Piracy and armed robbery against ships increased 16 percent in July 2002 compared to July of last year. Incidents in the South China Sea were up 18 percent, while incidents in West and East Africa and the Malacca Strait declined. Incidents in the Indian Ocean more than doubled.

While passenger aviation continues to rebound from the lows reached in September 2001, domestic passenger miles on large U.S air carriers in June 2002 were still 6 percent below levels of June 2001. International passenger miles on U.S. air carriers were down 12 percent in June 2002 compared to June 2001.

Large U.S. air carriers had a revenue load factor for freight on domestic flights of 29 percent in June 2002, the lowest value in the 10 years tracked by this report. On international flights, the revenue load factor for freight increased by 4 points to 48 percent.

U.S. rail intermodal traffic was up nearly 8 percent for the week ending September 7 (week 36) compared to the same week last year. Canadian intermodal rail traffic increased 26 percent when the same two weeks are compared.

Air carrier passenger revenues declined 18 percent in the second quarter of 2002 compared to the same quarter last year. Operating revenues were down 14 percent and operating expenses were down 11 percent. However, freight revenues increased 8 percent.

There was a 6 percent decline in the real return on assets for large U.S. air carriers over the four quarters ending June 2002. The real return on assets reached the lowest value in the 10 years tracked by this report.

Manufacturers' new orders for transportation equipment were up 21 percent in July 2002 from the previous month, seasonally adjusted- the highest level for any July tracked over the 10 years covered by this report.